TaxTMI 
TaxTMI 
TaxTMI 
2021 (8) TMI 711
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....(A) were heard together and disposed off by this consolidated order. 2. With the consent of the parties, the case of the assessee in ITA No. 245/Jodh/2019 was taken as a lead case for the purposes of present discussion. ITA No. 245/JODH/2019 3. During the course of hearing, the ld. AR submitted that the assessee has purchased a property jointly with his wife and two partners namely Dalpat Singh Nanecha and Reetu Devi Nanecha on 03.09.2014 from UIT, Bhilwara for a consideration of Rs. 1,26,00,000/-. It was submitted that the assessee was only a joint owner of the property to the extent of ¼ share in the property and consideration of the property in the hands of the assessee was only Rs. 31,50,000/- which is less than Rs. 50 lacs, ....
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....201 of the Act. It was submitted that in the instant case, the assessee has failed to deduct tax @ 1% at the time of payment of his share to the transfer of the property as per provisions of Section 194IA of the IT Act. Therefore, the assessee has committed default for non- deduction of TDS on payment of Rs. 31,50,000/- which is ¼ of the total consideration of Rs. 1,26,00,000/-, being the assessee's share in the property. It was submitted that in case of joint owners of the property, the threshold limit of Rs. 50,00,000/- is to be determined property-wise and not transferee-wise and the number of buyers and sellers would not matter at all and so long as the value of the property is more than Rs. 50 lacs, the provisions of Section 194....
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....any immovable property (other than agricultural land), shall, at the time of credit of such sum to the account of the transferor or at the time of payment of such sum in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to one per cent of such sum as income-tax thereon." (2) No deduction under sub-section (1) shall be made where the consideration for the transfer of an immovable property is less than fifty lakh rupees. (3) The provisions of section 203A shall not apply to a person required to deduct tax in accordance with the provisions of this section. Explanation.--For the purposes of this section,-- (a) "agricultural land" means agricultural land in India, not being a lan....
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....uals as demonstrated by its filings in Form 27Q which has been accepted by the Revenue authorities and subsequently processed and intimation issued under section 200A of the Act. In light of the same, in our view, the provisions of section 194-IA are not applicable in the instant case. Given that the provisions of section 194-IA are not attracted, there is no basis for levy of interest and late fee under section 234E of the Act and the demand so raised is hereby directed to be deleted. However, we make it clear that TDS already deposited shall not be refunded to the assessee as the transferor would be entitled to claim credit of the same in their respective return of income." 6. As held in the aforesaid decision, on harmonious reading of ....
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....at section 194-IA(1) is applicable on any person being a transferee, so section 194-IA(2) is also applicable only w.r.t. the amount related to each transferee and not with reference to the amount as per sale deed. Each transferee is a separate income tax entity therefore, the law has to be applied with reference to each transferee as an individual transferee / person. The relevant findings read as under: "5.2 After perusing the Paper Book and the relevant provisions of law, we find that Section 194-IA(2) provides that Section 194- IA(1) will not applicable where the consideration for transfer of immovable property is less than Rs. 50,00,000/-. However, section 194-IA(1) is applicable on any person being a transferee, so section 194-IA(2) ....
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....nsferees. In order to justify his action since in case of separate orders for each transferee separately, apparently, provisions of section 194IA could not had been made applicable since in each case purchase consideration is only Rs. 37,50,000/-. This action of AO shows that he was also clear in his mind that with reference to each transferee, Section 194IA was not applicable. Hence, we are of the considered view that the addition made by the AO and confirmed by the Ld. CIT(A) is not sustainable in the eyes of law, thus the same is deleted. As far as issue of charging interest is concerned, the same is consequential in nature, hence, need not be adjudicated. As regards the case laws cited by the Ld. DR are concerned, the same are on distin....